How to Properly Execute a Lien Waiver Form in Florida

The correct use of lien waivers holds great importance. Florida has specific guidelines to follow, and errors can result in a range of issues. This blog will provide you with step-by-step instructions on how to properly execute a lien waiver in Florida to avoid any disputes on the construction site. Keep reading!

Understanding Lien Waivers in Florida

Lien waivers are essentially legal documents where a party working on a construction project agrees to give up their right to file a lien on the property in exchange for payment. A lien is a legal claim against a property to secure payment for labor or materials provided. There are four types of lien waivers commonly used in Florida:

1. Conditional Waiver and Release on Progress Payment: Used when a progress payment is made but not yet cleared.

2. Unconditional Waiver and Release on Progress Payment: Used when a progress payment has been made and cleared.

3. Conditional Waiver and Release on Final Payment: Used when the final payment is made but not yet cleared.

4. Unconditional Waiver and Release on Final Payment: Used when the final payment has been made and cleared.

Steps to Properly Execute a Lien Waiver Form in Florida

Step 1 - Identify the Correct Type of Waiver

• Identify if it's a progress or final payment waiver, and whether the payment has cleared (unconditional) or is still pending (conditional).

Step 2 - Fill the Lien Waiver Form Correctly

• Make sure all the information is accurate, including:

• Everyone's names and addresses (property owner, contractor, you, etc.)

• Project details (name, location, what kind of work you did)

• Payment details (amount, date, invoice numbers)

• Waiver terms (is it conditional or unconditional? What does it cover?)

Step 3 - Verify the Payment

• For conditional waivers, don't sign until the money hits your account. For unconditional waivers, make sure the bank clears the check before you celebrate.

Step 4 - Sign and Notarize

• Sign the lien waiver form in the presence of a notary public to ensure its validity.

• Both the signer and the notary must include their names, signatures, and the date of signing.

Step 5 - Deliver the Lien Waiver

• Give a copy of the signed waiver to the person who paid you (contractor, owner, lender) and keep a copy of your records.

• Keep a copy of your records to ensure documentation of the transaction.

Common Mistakes to Avoid When Signing a Florida Lien Waiver Form

• Incorrect Form: Using the wrong type of lien waiver (e.g., unconditional instead of conditional) can lead to legal complications.

• Incomplete Information: Omitting details such as project description or payment amount can render the waiver invalid.

• Premature Signing: Signing an unconditional waiver before the payment clears can leave you unprotected if the payment fails.

• Lack of Notarization: Failure to notarize the waiver can result in its rejection.

Key Takeaway

Lien waivers are a necessary tool in the Florida construction industry. By understanding their purpose, proper execution methods, and potential negotiation points, you can navigate the process with confidence. Remember, clear communication and a healthy dose of caution will ensure you're protected while keeping your projects running smoothly.

For further guidance or if you encounter complex situations, consulting with experts at SunRay who specialize in Florida lien laws is always a wise investment. We can provide tailored advice to safeguard your rights and ensure a successful project outcome. Call 800-403-7660 today and get paid what you deserve!

FAQs: Your Lien Waiver Worries Answered

Can I sign a lien waiver before starting work?

No, Florida law prohibits waivers signed before furnishing labor or materials.

What happens if I accidentally sign an unconditional waiver and haven't received full payment?

This can be tricky. While you give up your lien rights, you can still pursue legal action to recover the unpaid amount, but it might be a more complex process compared to filing a lien. Consulting a construction attorney or SunRay experts is highly recommended in this situation.

Is there a deadline for filing a lien after waiving my rights for a progress payment?

Yes, Florida law generally gives contractors and subcontractors 90 days from the last day of work performed to file a lien for the specific work not covered by the progress payment waiver.

Can I revoke a lien waiver after I've signed it?

Generally, no. A lien waiver is a binding agreement. However, if there was fraud or mistake involved in obtaining your signature, you might have grounds to challenge its validity.  This is where seeking legal advice becomes crucial.

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